A 2009 federal call to action seeking to improve postsecondary outcomes was largely underscored by a financial recession that continues to have lasting effects on state funding for public postsecondary education. In an effort to improve efficiency while also growing the number of postsecondary completers, states began adopting performance management policies to help link institutional performance with future funding outcomes. The purpose of this study was to determine if funding outcomes at Arkansas community colleges were related to specific student characteristics of the institution. The researcher hypothesized that there was a significant relationship between an institution's funding outcome and three student characteristics of interest (low-income, non-traditional age, minority) after controlling for credential growth. The study used four research questions to explore the relationship between funding outcomes, credential growth, and the three student characteristics of interest. The study used a hierarchical linear model building procedure to help reduce unexplained variance in both the within-and-between subjects' levels. After controlling for credential growth, the study found that of the three student characteristics variables, only the low-income variable acted as a statistically significant predictor for funding outcomes. Although this study is underpowered, these results indicate the need for further research regarding the relationship between low-income students and institutional funding outcomes in states utilizing outcomes-based performance funding. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]